BROCKTON – The City Council will take up legislation during Monday’s Finance Committee meeting, which would set the application fee for opening a medical marijuana dispensary in Brockton at $1,500.

In January, the Massachusetts Department of Public Health granted In Good Health, Inc., a provisional license to open a medical marijuana dispensary in Brockton, where the nonprofit organization would grow and sell marijuana and marijuana-infused products.

However, more money could be on the way for the city if Brockton is able to strike a deal with the organization for serving as its host community.

“I have had preliminary conversations with the proposed licensee around a PILOT (Payment in Lieu of Taxes) program,” said Mayor Bill Carpenter.

Carpenter declined to discuss the specifics of those conversations beyond stating that In Good Health had sent his office a proposal for such an agreement.

In its application with the state, In Good Health projected revenues of $1,595,000, $2,492,500 and $3,390,000 during its first three fiscal years.

The City Council settled on the figure of $1,500 for the application fee, which was written into the city’s medical marijuana zoning ordinance last year, after the city clerk’s office did a comparison of what other communities were setting as the price of their application fees.

“The fee is just supposed to be enough to cover any costs you have for issuing the permit,” said Ward 2 City Councilor Thomas Monahan.

While Monahan and Ward 3 City Councilor Dennis Eaniri both expressed a desire for the city to receive additional review as the dispensary’s host, they stated that the fee must be set in a fair way.

“Those two things need to be separate,” Eaniri said. “You can’t just say I want $20,000 for the application fee.”

All nonprofit organizations seeking to apply for a medical marijuana dispensary license were required to pay a non-refundable $30,000 application fee to state, and those which were approved have to pay a $50,000 registration fee, also non-refundable.

All applicants were also required to prove that they had $500,000 in cash on hand as well.

However, before the city begins to take its cut from what could be Brockton’s newest multi-million business, Carpenter said he has concerns about the dispensary, and the state’s selection process, that he wants to address.

“I have reservations about this current proposal,” Carpenter said. “I have questions about the process by which this one was selected. And I don’t like the location.”

The new medical marijuana industry can mean big bucks for the municipalities that host the facilities.

For instance, Ermont Inc., which was granted a provisional license to open a medical marijuana dispensary in Quincy, agreed to enter into a host agreement that would require the nonprofit to share a percentage of its revenue with the city.

Page 2 of 2 - According to Ermont’s application with the state, the nonprofit projects to bring in $3,497,777 in revenue during their first fiscal year of operation.

In Alternative Therapies Group’s application to the state, the nonprofit agreed to donate $50,000 per year to Salem and Amesbury as part of a community benefits agreement.